MGMT 1 Lecture Notes - Lecture 1: Merage Family, Sales Promotion
Document Summary
Different stages in the product life cycle call for different marketing strategies. Product: offer market-tested product, keep mix small. Price: go after innovators with high-introductory price or use penetration pricing. Promotion: dealer promotion and heavy investment in primary demand advertising and sales promotion to get stores to carry the product and consumers to try it. Low sales, losses may occur, few competitors. Product: improve product, keep product mix limited. Rapidly rising sales, very high profits, growing number of competitors. Product: differentiate product to satisfy different market segments. Place: take over wholesaling function and intensify distribution. Promotion: emphasize brand name as well as product benefits and differences. Peak sales, declining profits, stable number of competitors then declining. Product: cut product mix, develop new-product ideas. Promotion: reduce advertising to only loyal customers. Falling sales, profits may fall to become losses, declining number of competitors.
